Fearnley cuts Bakkafrost to 'hold' on softer farming margins

P/F Bakkafrost

18/02/2025 09:11

** Fearnley Securities cuts Bakkafrost  BAKKA.OL  to "hold"
from "buy" on softer farming margins
    ** Fearnley analyst Theodor Aleksander Rosenberg says the
margins are driven by lower volumes in Scotland, a
flatter-than-expected cost curve across both regions, and
increased competition in the large fish segment
    ** The competition pressures Bakkafrost's historical price
premium in the segment, Rosenberg says
    ** "Strong biological conditions" in Norway should also
increase the supply of large fish and reinforce the price
pressure, notes Rosenberg
    ** The broker also expects higher costs for Faroe Islands
farming, further decreasing profits, adding that external
fishmeal and oil sales should stay low through Q1 2025
    ** Similarly, Arctic Securities cut Bakkafrost to "hold"
from "buy" on Monday, citing lower EBIT expectations for two of
the company's segments, and higher costs for farming in the
Faroe Islands
    ** Out of 11 analysts covering the stock, six rate it
"strong buy"/"buy" and five rate it "hold"
    
    

 (Reporting by Vera Dvorakova)
 ((vera.dvorakova@thomsonreuters.com))